MRP Real Estate Practices & Compliance for Military Families 2 — Questions and Answers
Question 1: Under the Servicemembers Civil Relief Act (SCRA), what is the maximum interest rate that can be charged on pre-service mortgage obligations while a servicemember is on active duty?
- 3%
- 6% (Correct answer)
- 8%
- 10%
Correct answer: 6%
The SCRA caps interest rates on pre-service obligations, including mortgages, at 6% per year during active duty.
Question 2: A military family has a VA loan with a remaining balance. They are PCS'd to a new duty station. Which option allows another qualified buyer to take over their existing VA loan?
- Refinancing
- Assumption (Correct answer)
- Subordination
- Novation
Correct answer: Assumption
VA loans are assumable, meaning a qualified buyer can take over the existing loan terms with lender and VA approval.
Question 3: Which federal law requires lenders to provide military borrowers with a Loan Estimate within three business days of receiving a complete mortgage application?
- SCRA
- RESPA
- TILA-RESPA Integrated Disclosure (TRID) (Correct answer)
- MLA
Correct answer: TILA-RESPA Integrated Disclosure (TRID)
TRID, which merged TILA and RESPA disclosures, requires the Loan Estimate be delivered within three business days of application.
Question 4: When a servicemember must vacate a rental due to PCS orders, the SCRA requires how much notice to the landlord to terminate the lease?
- 15 days written notice
- 30 days written notice (Correct answer)
- 45 days written notice
- 60 days written notice
Correct answer: 30 days written notice
The SCRA requires at least 30 days written notice to terminate a lease for PCS or deployment orders.
Question 5: A VA-guaranteed loan requires which of the following from the veteran buyer?
- A minimum 3.5% down payment
- Private mortgage insurance (PMI)
- A Certificate of Eligibility (COE) (Correct answer)
- A minimum 620 credit score mandated by the VA
Correct answer: A Certificate of Eligibility (COE)
The Certificate of Eligibility (COE) verifies to the lender that the veteran meets VA service requirements for the loan benefit.
Question 6: Under the Fair Housing Act, which protected class is most directly relevant to military families seeking housing near installations?
- Familial status (Correct answer)
- National origin
- Religion
- Sex
Correct answer: Familial status
Familial status protects families with children under 18, which is especially relevant for military families who frequently relocate with dependents.
Question 7: An MRP specialist working with a relocating soldier should be aware that BAH (Basic Allowance for Housing) is calculated based on which factor?
- The servicemember's rank and number of dependents only
- The duty station ZIP code and pay grade with or without dependents (Correct answer)
- The national average housing cost index
- The servicemember's years of service
Correct answer: The duty station ZIP code and pay grade with or without dependents
BAH rates are determined by the duty station's local housing market (ZIP code), the servicemember's pay grade, and whether they have dependents.
MRP Real Estate Practices & Compliance for Military Families 2
Under the Servicemembers Civil Relief Act (SCRA), what is the maximum interest rate that can be charged on pre-service mortgage obligations while a servicemember is on active duty?